Amsterdam-based Otrium raised €102M in Series C Funding

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Today, Otrium, the end-to-end marketplace for end-of-season clothing, announced a Series C fundraising round of about €102.3 million, its launch in the US, and the addition of additional features aimed at lowering unsold clothing in the future.

Additionally, Otrium disclosed that it now has over 300 fashion retailers on its app, its registered members have topped 3 million, and its revenues have tripled in 2020. Joseph, Anine Bing,  Karl Lagerfeld, Reiss,Belstaff, and ASICS are a few of its partners.

Since its founding in 2016, Otrium has been working with the fashion industry to make sure that every piece of clothing is worn, to help sell every item that has already been made, and to give designers the resources they need to create lines that they can be confident will be successful.

Fashion houses maintain complete control over pricing, promotion, and visibility of their excess inventory while selling end-of-season collections on Otrium. About 12% of the clothes manufactured are unsold.

We want to eliminate unsold seasonal inventory as much as we can. First and foremost, we assist fashion businesses in maximizing their earnings by helping them find homes for apparel goods that might otherwise go unsold.

Second, we use our thorough analytics to assist brands in determining which apparel, in what quantities, and at what pricing will be the most popular in the future, according to Otrium CEO and co-founder Milan Daniels.

Otrium recently released improved analytics technology that aids fashion businesses in analyzing historical demand to identify goods with staying power and the potential to establish brands as iconic. Over the next few years, we foresee a rebalancing in the fashion sector, with less emphasis on new seasonal introductions and more reliance on the timeless products that companies sell year after year.

 We assist brands in determining which of their products will endure the test of time and at what price and quantity, Daniels continued.

Juliet de Baubigny, a general partner at BOND, said, “I look forward to engaging with the Otrium team as the firm expands to the US, and feel the platform is well-positioned to deliver fresh and cheap solutions to the garment market.”

The idea of brands manufacturing fewer new things and concentrating more on what their customers love and keep buying is compelling, according to Danny Rimer, General Partner of Index Ventures and member of the Otrium board. It’s not a completely new technique in the fashion industry, but it was only used for a select few things and a relatively small number of international fashion labels. Every fashion brand can start developing its iconic portfolio using Otrium.

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